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HomeMy WebLinkAbout10-02-24 Agenda Packet M eeting L ocation: M unicipal Center 7100 147th Street West Apple Valley, M innesota 55124 October 2, 2024 PLA N N IN G C O MMISSIO N T EN TAT IVE A G EN D A 7:00 P M 1.Call to Order 2.Approve Agenda 3.Approve Consent Agenda Items Consent Agenda Items are considered routine and will be enacted with a single motion, without discussion, unless a commissioner or citizen requests to have any item separately considered. It will then be moved to the land use/action items for consideration. A.Approve Minutes of September 18, 2024 Regular Meeting 4.Public Hearings 5.Land Use / Action Items A.Zoning Ordinance Amendment - Cannabis Business Ordinance C onsider a text amendment to the zoning ordinance regarding cannabis businesses. LO C AT IO N: C itywide PET IT IO N ER: C ity of Apple Valley 6.Other Business A.Review of Upcoming Schedule and Other Updates Planning Commission - Wednesday, October 16, 2024 - 7:00 p.m. Planning Commission - Wednesday, November 6, 2024 - 7:00 p.m. C ity Council - T hursday, October 10, 2024 - 7:00 p.m. C ity Council - T hursday, October 24, 2024 - 7:00 p.m. 7.Adjourn Regular meetings are broadcast, live, on C harter C ommunications C able C hannel 180 and on the C ity's website at www.applevalleymn.gov I T E M: 3.A. P L A NNI NG C O MMI S S I O N ME E T I NG D AT E:October 2, 2024 S E C T I O N:Consent A genda Description: A pprove Minutes of September 18, 2024 Regular Meeting S taff Contact: B reanna Vincent, Department Assistant Department / Division: Community Development Department AC T I O N RE Q UE S T E D: Approve minutes of the regular meeting of September 18, 2024. S UM M ARY: T he minutes of the regular Planning Commission meeting is attached for your review and approval. B AC K G RO UND: State statute requires the creation and preservation of meeting minutes which document the official actions and proceedings of public governing bodies. B UD G E T I M PAC T: N/A AT TAC HM E NT S : Minutes CITY OF APPLE VALLEY PLANNING COMMISSION MINUTES September 18, 2024 1. CALL TO ORDER The City of Apple Valley Planning Commission Meeting was called to order by Chair Kurtz at 7:00 p.m. Members Present: Jodi Kurtz, Paul Scanlan, Becky Sandahl, Phil Mahowald, Jeff Prewitt, and Douglas Hlas Member(s) Absent: David Schindler City staff members attending: Community Development Director Tim Benetti, Assistant City Engineer Evan Acosta, Planner/Economic Development Specialist Alex Sharpe, City Attorney Sharon Hills, and Department Assistant Breanna Vincent. 2. APPROVAL OF AGENDA Chair Kurtz asked if there were any changes to the agenda. – None. MOTION: Commissioner Scanlan moved, seconded by Commissioner Sandahl, approving the agenda. Roll call vote: Ayes - 6 – Nays – 0. 3. CONSENT ITEMS A. Approval of Minutes of August 21, 2024 MOTION: Commissioner Scanlan moved, seconded by Commissioner Sandahl, approving the minutes of August 21, 2024. Roll call vote: Ayes - 6 – Nays – 0. 4. PUBLIC HEARING A. Zoning Ordinance Amendment – Cannabis Business Ordinance Chair Kurtz opened the public hearing. Planner Sharpe gave a presentation. Commissioner Hlas asked if the Office of Cannabis Management has already been established and will they be dealing with the ordinances once set up. CITY OF APPLE VALLEY Dakota County, Minnesota Planning Commission Minutes September 18, 2024 Page 2 of 6 Planner Sharpe stated that it is in place though not fully staffed, and they will not be enacting local ordinances. The process would be for the person to apply for a license through the Office of Cannabis Management (OCM), once the applicant receives a preliminary license, they can start soliciting for locations. Once they find a location of interest, they would contact their local zoning authority about what might be needed and then they apply for an official license at that location with the OCM who would then reach out to the City to see whether it would meet our zoning ordinances. The City has 30 days to reply to the OCM for this information. Commissioner Hlas asked if someone is granted a license, are they restricted to going within the commercial area. Planner Sharpe stated that there are two types of licenses, mezzobusiness and microbusiness that can operate within industrial zones and have a retail component similar to Abdallah Candies. Commissioner Mahowald asked why there is a need for buffers and if there are risks or concerns that are attempted to be mitigated by having a buffer. Planner Sharpe speculated that legislature likely put the ability for buffers within the statute to deter the sale of those products from occurring around sensitive such as schools, daycares, and treatment centers. City Council is in favor of a buffer since the statute allows it and there is concern for these products to end up in sensitive areas. Commissioner Mahowald stated that buffers are the only restrictions a municipality can have and that cannabis businesses are basically mandated by legislature. Planner Sharpe stated that legislature is not requiring municipalities to have these businesses but rather they cannot prohibit the use and sale of this business. There is no minimum amount of these businesses required. Commissioner Mahowald asked if there are similar buffers tobacco establishments. Planner Sharpe stated that there are no buffers for tobacco or liquor stores. “Adult uses” are the only use that has a buffer built into the ordinance currently. Chair Kurtz asked if there will be discretion in choosing which types of cannabis business licenses come in. Planner Sharpe stated that the City does not need to determine that as licenses will be issued by OCM. There is a cap on certain business types. The City is in charge of registering the business and local enforcement of compliance within our ordinance. CITY OF APPLE VALLEY Dakota County, Minnesota Planning Commission Minutes September 18, 2024 Page 3 of 6 Commissioner Scanlan asked for clarification on the locations that retail cannabis operations could occur. Planner Sharpe said that all the red areas shown on the buffer map are where retail/commercial is allowed in the entirety of Apple Valley. Commissioner Prewitt asked if the capped number of locations includes medical cannabis retailers. Planner Sharpe stated that it does include medical. Commissioner Mahowald asked where cannabis products can be consumed. City Attorney Hills said that currently under state law, a person can consume cannabis in their private home. It is not allowed in any City public property. Commissioner Sandahl asked if retail business will be allowed in the Mixed Business Campus. Planner Sharpe stated that it is possible as that ordinance is still being drafted. Commissioner Scanlan asked if there would be enough space for 5 retail cannabis businesses to be located in the City with the buffers in place. Planner Sharpe said that City staff worked together to make sure there would be enough space for the retailers with buffers in place. With a 500’ buffer, the City could fit at least 19 sites, and with a 1,000’ buffer, the City could fit at least 13 sites. Commissioner Sandahl asked what would happen if a preschool wanted to move next door to a cannabis retail business. City Attorney Hills said that it would be the preschool’s decision and would not affect the existing cannabis retail business. Commissioner Mahowald asked if a conditional use permit would be a better option for these businesses if changes need to be made in the future, as this new legislature takes place. City Attorney Hills stated that the City is only looking at the zoning while the state will be handling all regulations. Commissioner Scanlan opined that a 1,000’ buffer would be appropriate. CITY OF APPLE VALLEY Dakota County, Minnesota Planning Commission Minutes September 18, 2024 Page 4 of 6 Commissioner Hlas asked if buffer measurement would be taken from the property line or the structure. Planner Sharpe said that it would be from the property line. The OCM advised that buffers be taken from where the City has buffers for other uses to remain consistent. Apple Valley currently has buffers from property line to property line for adult uses as well as Class II restaurants from residential areas. With no further comments, Chair Kurtz closed the public hearing. 5. LAND USE A. Orchard Place Apartments Comprehensive Plan Amendment CD Director Benetti gave a presentation addressing the comments received at the public hearing. Commissioner Scanlan stated that this may increase walkability in the surrounding areas and advised that additional pedestrian access and crosswalks be explored when the formal plan is brought forward. CD Director Benetti said that staff is encouraging strategically placed crosswalks so that pedestrians have safe access points. Chair Kurtz opined that multi-family housing is a better option than having an empty lot. This will be beneficial to the retail business and bring more people in. Commissioner Mahowald asked for clarification on the vacancy rate of 2.9%. CD Director Benetti stated that the rate is for all apartments. Commissioner Mahowald asked if the lot to the northwest of the site is still planned for high-density as well. CD Director Benetti advised that it is a holding place for Pulte Homes to take over the site once AVR/McNamara are finished with the maintenance area of the gravel pit. Once finished, it will likely be a continuation of the current townhomes south of that site. Commissioner Mahowald opined that the original plan of having two medium box stores and two restaurants with patios with a concrete feature would be a better use of the space. CITY OF APPLE VALLEY Dakota County, Minnesota Planning Commission Minutes September 18, 2024 Page 5 of 6 Commissioner Hlas commented that the development does seem to complement the surrounding area with the park and trail systems, as well as surrounding businesses. Commissioner Sandahl stated that the supplemental letters of support from surrounding businesses provided by the applicant were helpful to see. The applicants, Chris Moe (HJ Development) and Roger Fink (Trident Development, LLC) showed examples of other multi-family residential developments within retail areas done in the past. MOTION: Commissioner Scanlan moved, seconded by Commissioner Sandahl, to recommend approval of a Comprehensive Plan Amendment from “C” (Commercial) to “HD” (High Density Residential) of the 5.62-acrea parcel on the northwest corner of 157th St W and English Ave. Roll call vote: Ayes – 5 – Nays – 1. 6. OTHER BUSINESS A. Zoning Ordinance Amendment – Cannabis Business Ordinance CD Director Benetti stated that background information regarding the proposed Cannabis Business Ordinance is included in the staff report to prepare the Commission prior to the public hearing on September 18th. B. Review of Upcoming Schedule and Other Updates The next Planning Commission meeting is scheduled for Wednesday, October 2, 2024, 7:00 p.m. The next City Council meeting is Thursday, September 26, 2024, 7:00 p.m. 7. ADJOURNMENT Chair Kurtz asked for a motion to adjourn. MOTION: Commissioner Scanlan moved, seconded by Commissioner Sandahl, to adjourn the meeting at 8:45 p.m. Roll call vote: Ayes – 6 – Nays – 0. CITY OF APPLE VALLEY Dakota County, Minnesota Planning Commission Minutes September 18, 2024 Page 6 of 6 Respectfully submitted, ______________________________________ Breanna Vincent, Planning Department Assistant Approved by the Apple Valley Planning Commission on 10/02/2024 . Jodi Kurtz, Chair I T E M: 5.A. P L A NNI NG C O MMI S S I O N ME E T I NG D AT E:October 2, 2024 S E C T I O N:L and Use / Action I tems Description: Zoning Ordinance A mendment - Cannabis Business Ordinance S taff Contact: A lex Sharpe, A I C P, Planning and Economic Dev. S pec. Department / Division: Community Development Department Applicant: City of Apple Valley P roject Number: P C24-12-O Applicant Date: 60 Days: 120 Days: AC T I O N RE Q UE S T E D: If the Planning C ommission concurs, staff recommends the following action: Recommend adoption of the draf t Cannabis Business Ordinance with an added provision stating that setback buf f ers do not apply to an existing licensed and registered cannabis retailer if one of the setback special uses subsequently commences operation within the buf fer area. Additionally, the C ommission recommends:(Added Options here) T he C ommission is also asked to include in their motion whether a separation buffer between retail sales of cannabis products is sought, and if so, what distance is preferred. Potential motions have been added below and can be added to the motion above. Options: 1. Recommend that a separation distance between retail sales locations of cannabis products is not needed. 2. Recommend a 500' separation distance buff er between retail sales locations of cannabis products. 3. Recommend a 1,000' separation distance buf f er between retail sales locations of cannabis products. S UM M ARY: On September 18, 2024, the Planning C ommission held the public hearing for the cannabis ordinance's zoning related provisions. No members of the public provided testimony. T he City received written comment which was incorporated into the record. T he C ity Attorney reviewed the letter and suggested amendments to the definition of retail sales and added clarifying language stating that the micro and mezzo businesses may include retail sales per state statute and subject to the C ity's ordinance if the retail sales occurred in the "I-1", I-2" and "BP" districts. T he Planning C ommission studied the issue and asked clarifying questions. Notably, what would occur if a licensed and registered retail business opened a location and afterwards a new business, school or park placed the retail business within one of the buffer zones. Staff and the City Attorney studied this and found an example from Lakeville's ordinance which was adopted in September 2024. A short provision stating: "that setback buffers do not apply to an existing licensed and registered cannabis retailer if one of the setback special uses subsequently commences operation within the buffer area" is recommended by staff and the City Attorney. If the Planning Commission concurs, staff has added this language to the motion for the Planning Commission. Staff and the City Attorney are seeking clarification from the Planning C ommission on whether a buffer between retail cannabis businesses is sought, and if so, whether the Commission recommends a 500' or 1,000' buffer. B AC K G RO UND: In 2023, the Minnesota Legislature passed a bill legalizing adult use of cannabis and cannabis businesses, part of this bill also created T he Office of C annabis Management (O C M). O C M was created to regulate and oversee the cannabis industry in Minnesota. At the August 8, 2024, C ity C ouncil informal meeting, staff introduced the background and groundwork for a local cannabis ordinance. As noted in the staff memo to Council, most cities have waited for O C M to provide a draft/model ordinance and a guide for local governments which were released in mid-J une 2024. T his guide is on version four since the initial release to reflect new legislation in 2024. If members of the public or the Commission would like to view the updated version, it can be provided by staff upon request. If the C ity seeks to adopt regulations for the cannabis industry within the C ity, a cannabis ordinance must be adopted and published by J anuary 1, 2025. As this is when the moratorium will expire and O C M will begin issuing preliminary licenses. A tentative schedule was presented to the City C ouncil to meet the J anuary 1st deadline. T he City Council must act on the ordinance no later than December 12, 2024, to allow adequate time to publish as required by State statute. At the August 8th informal council meeting, the C ity C ouncil provided staff and the Commission with direction on three guiding policy questions, which are the following: 1. Should the number of retail cannabis businesses be capped? If so, how should licenses be determined? Council Direction: Yes, limit to 5, the statutory minimum. 2. Should the City implement buffers as outlined in the State Statutes? Council Direction: Yes, at the maximum buff ers as allowed by statute, see the attached draf t map. C ouncil also directed staf f to evaluate buf f ers between retail sales locations. This will be presented to the Commission on September 18th. 3. Which zoning districts should be considered for each type of use? Council Direction: See the draft land use table attached. See the attached matrix for all cannabis businesses proposed zoning districts as supported by Council. T he zoning districts noted in the table also apply to Planned Developments as their underlying zoning district regulations still apply to similar uses. Draft Ordinance Summary A high-level summary of major points of the draft ordinance is below: License C aps A cap on the number of retail sales locations has been set to the statutory minimum, which is 5 locations. T he C ity is not required to place a cap on the number of locations. T he City C ouncil provided policy direction to initially limit the total number and potentially evaluate increasing the number at a later date. T he cap only applies to retail sale locations of higher potency cannabis products. T he statute does not allow for a cap total number of other cannabis-based businesses such as manufacturers or cultivators. T he cap does not apply to the lower dose hemp-based products. Statute does not allow a city to cap the number of locations where this product is sold. Buffers from Sensitive Uses and B etween Retail Sale Locations T he draft ordinance requires a buffer between cannabis retail sales and sensitive uses. T he City Council provided direction to require the maximum buffer permitted by statute, these are: 1,000' from schools 500' from daycares 500' from residential treatment facilities 500' from parks B UD G E T I M PAC T: N/A AT TAC HM E NT S : Ordinance Exhibit Map L etter 1 CITY OF APPLE VALLEY ORDINANCE NO. ____ AN ORDINANCE OF THE CITY OF APPLE VALLEY, MINNESOTA, AMENDING CHAPTER 155 OF THE CITY CODE TO ADD SECTION 155.320 REGULATING CANNABIS BUSINESSES, HEMP BUSINESSES, AND CANNABIS EVENTS The City Council of Apple Valley ordains: Section 1. Chapter 155 of the Apple Valley City Code is hereby amended by adding Section 155.320 to read as follows: CANNABIS BUSINESSES, HEMP BUSINESSES, AND TEMPORARY CANNABIS EVENTS § 155.320 CANNABIS BUSINESSES, HEMP BUSINESSES, AND TEMPORARY EVENTS. (A) Purpose. The purpose of this section is to regulate the time, place, and manner of the operation of cannabis businesses, hemp businesses, and temporary cannabis events as authorized by Minnesota Statutes, Chapter 342. The regulations set forth in this section further and promote the city’s interests relative its purposes for zoning regulations as set forth in Section 155.001 and to ensure compatibility of surrounding land uses. (B) The definitions of words and phrases contained in Minn. Stat. § 342.01 and the Rules promulgated by the Office of Cannabis Management shall apply to this section unless defined differently herein. The following words and phrases shall have the meanings stated: CANNABIS CULTIVATION and CULTIVATE CANNABIS. Growing cannabis plants from seed or immature plant to mature plant, harvesting cannabis flower from mature plant, packaging and labeling immature plants and seedlings and cannabis flower for sale to other cannabis businesses, transporting cannabis flower to a cannabis manufacturer located on the same premises, and performing other actions approved by the Office of Cannabis Management. CANNABIS CULTIVATOR. A business that cultivates cannabis and packages cannabis for sale to another cannabis business. CANNABIS DELIVERY SERVICE. A business that purchases cannabis flower, cannabis products, and hemp products from cannabis retailers or cannabis businesses with a retail endorsement for the purpose of transport and delivery to customers. CANNABIS EVENT ORGANIZER. A person or entity who organizes or operates temporary cannabis events. 2 CANNABIS MANUFACTURER. A business manufacturing and/or packaging cannabis products and hemp products for sale to a cannabis retailer. CANNABIS MEZZOBUSINESS. A business that may cultivate cannabis and manufacture cannabis products and hemp products and package such products for sale to customers or another licensed business, and that may operate up to three retail locations with a retail operations endorsement. CANNABIS MICROBUSINESS. A business that may cultivate cannabis and manufacture cannabis products and hemp products and package such products for sale to customers or another licensed business, and that may operate a single retail location with a retail operations endorsement. CANNABIS RETAIL BUSINESS. A business that is licensed or required to be licensed by the State of Minnesota as a cannabis retailer, cannabis mezzobusiness with retail operations endorsement, cannabis microbusiness with retail operations endorsement, or medical cannabis combination business operating a retail location. CANNABIS RETAILER. A business that sells immature cannabis plants and seedlings, cannabis flower, cannabis products, hemp products, and other products authorized by law to customers and patients, including a cannabis microbusiness with a retail operations endorsement, cannabis mezzobusiness with a retail operations endorsement, and medical cannabis combination business to the extent it is engaged in retail sales exclusively at a location off-site of its cultivation or manufacturing operations, selling only its cultivated cannabis or manufactured cannabis products. CANNABIS TESTING FACILITY. A business that obtains and tests immature cannabis plants and seedlings, cannabis flower, cannabis products, and hemp products. CANNABIS TRANSPORTER. A business that transports immature cannabis plants and seedlings, cannabis flower, cannabis products, and hemp products to licensed cannabis businesses. CANNABIS WHOLESALER. A business that purchases and/or sells immature cannabis plants and seedlings, cannabis flower, cannabis products, and hemp products from another licensed cannabis business, and/or imports hemp-derived consumer products and lower-potency hemp edibles. HEMP RETAIL BUSINESS. A business that is licensed or required to be licensed by the State of Minnesota as a lower-potency hemp edible retailer. LOWER-POTENCY HEMP EDIBLE MANUFACTURER. A business that manufacturers and packages lower-potency help edibles for consumer sale, and/or sells hemp concentrate and lower-potency hemp edibles to other cannabis businesses and hemp businesses. LOWER-POTENCY HEMP EDIBLE RETAILER. A business that sells lower-potency hemp edibles to customers. 3 MEDICAL CANNABIS COMBINATION BUSINESS. A business that cultivates cannabis and manufactures cannabis and hemp products, and packages such products for sale to customers, patients, or other licensed cannabis businesses, and may operate one retail location per congressional district. MEDICAL CANNABIS CULTIVATOR. A business that cultivates cannabis and packages cannabis for sale to another medical cannabis business to sell as medical cannabis flower or process into medical cannabinoid products. MEDICAL CANNABIS PROCESSOR. A business manufacturing and/or packaging medical cannabinoid products and hemp concentrate for sale to medical cannabis retailers. MEDICAL CANNABIS RETAILER. A business that sells medical cannabis flower and medical cannabinoid products to persons authorized by law to receive those products. TEMPORARY CANNABIS EVENT. An event lasting no more than 4 days at which cannabis products, cannabis flower, lower-potency hemp edibles, and hemp-derived consumer products may be sold and consumed and for which the organizer has a cannabis event organizer license issued by the Office of Cannabis Management. (C) Zoning. The operation of a cannabis business, a hemp business, and a temporary cannabis event, as the terms are defined herein, shall be limited to property zoned for commercial, industrial, and agricultural uses as specifically set forth below for each type of cannabis business and hemp business: Guiding Commercial Industrial PD Zoning District NCC LB GB RB SC VB BP I-1 I-2 PD AG Business Type Cannabis Retailer P P P P PD- R Cannabis Microbusiness P* P* P* Cannabis Mezzobusiness P* P* P* Cannabis Cultivator (Indoor only) P P P Cannabis Cultivator (Outdoor) P P P P Cannabis Manufacturer P P P Cannabis Wholesaler P P P Cannabis Transporter P P P Cannabis Testing Facility P P P Cannabis Event Organizer Temporary Event P P P P Cannabis Delivery Service P P P P P* P* P* Medical Cannabis Cultivator P P P P (Outdoor) 4 Medical Cannabis Processor P P P Medical Cannabis Retailer P P P P PD- R Medical Cannabis Combination Business P* P* P* Lower-potency Hemp Edible Manufacturer P* P* P* Lower-potency Hemp Edible Retailer P P P P P P PD- R * Retail sale of its cultivated cannabis or manufactured cannabis products is a permitted accessory use, provided the business has retail operation endorsement under its state license and shall be subject to the accessory retail sales regulations for the applicable zoning district regulations as set forth elsewhere in this Chapter. Notes: “P” means Permitted; and “PD-R” means Permitted in Planned Development districts (or zones therein) that permit freestanding or multi-tenant retail building stores and shops. (D) Cannabis business and hemp business regulations and performance standards. (1) Minnesota state license required. It is unlawful for any person or legal entity to operate or permit the operation of a cannabis business or hemp business without first obtaining, and having in effect, a license from the Office of Cannabis Management for the cannabis business or hemp business operated. (2) City registration required. Cannabis retail businesses and hemp retail businesses shall register with the city as required in Title XI of this Code. (3) Buffers. Cannabis businesses shall not be located within: (a) 1,000 feet of an elementary or secondary school (K-12 grades); (b) 500 feet of a state licensed day care center, including preschool programs, state licensed residential treatment facility, or an attraction within a public park that is regularly used by minors, including a playground or athletic field; or (c) [ 500-or-1000 feet (TBD)] of an existing lawful cannabis business, measured by a line from the nearest point on the property boundary line of the property on which the existing business is located to the nearest property boundary line of the property on which a business is proposed to be located. (4) Consumption or use of cannabis at or on the property of a cannabis business is prohibited. (E) Signage. Cannabis businesses and hemp businesses may have up to two outdoor signs fixed to the exterior of the building or upon the property of the business. The signage shall comply 5 with the sign permit and regulations set forth in Chapter 154 of this Code. The signage shall not contain imagery as prohibited by, and shall be in accordance with, state statute. (F) Minimum required off-street parking. Cannabis businesses and hemp businesses shall meet the minimum off-street parking requirements for the use (manufacturing, retail store, etc.) as set forth elsewhere in this chapter. (G) Application of Other Zoning Regulations. If not otherwise set forth specifically in this section, all zoning regulations in this chapter shall apply to cannabis businesses, hemp businesses and temporary cannabis events. (H) Temporary cannabis event. (1) Restrictions. A cannabis event organizer required to obtain a license from the state may host a temporary cannabis event provided the following requirements are met and the event complies with the requirements of a temporary outdoor event regulated elsewhere in this Chapter: (a) A temporary cannabis event may only occur in those zoning districts as set forth above in this Section; (b) The setback from any property line of any residential use or residential zoned property shall be no less than 200 feet and the setback for cannabis business as set forth elsewhere in this Section shall apply to any temporary cannabis event; (c) The event may last no longer than four (4) days (96 hours); and (d) Consumption or use of cannabis at or on the property of a temporary cannabis event is prohibited. Section 2. Summary approved. The City Council hereby determines that the text of the summary marked "Official Summary of Ordinance No. _____” a copy of which is attached hereto clearly informs the public of the intent and effect of the ordinance. The City Council further determines that publication of the title and such summary will clearly inform the public of the intent and effect of the ordinance. Section 3. Filing. A copy of the ordinance shall be filed in the office of the City Clerk. This copy shall be available for inspection by any person during regular office hours. Section 4. Publication. The City Clerk shall publish the title of this ordinance and the official summary in the official newspaper of the City with notice that a printed copy of the ordinance is available for inspection by any person during regular office hours at the Office of the City Clerk. 6 Section 5. Effective date. This ordinance shall take effect upon its passage and the publication of its title and the official summary. PASSED by the City Council this ___ day of ____________, 2024. _____________________________________ Clint Hooppaw, Mayor ATTEST: __________________________________ Christina M. Scipioni, City Clerk Date of Public Hearing: ___________________ Date Ordinance Adopted: ____________________ Date Ordinance Published in the Legal Newspaper: ____________________ 7 CITY OF APPLE VALLEY ORDINANCE NO. _____ AN ORDINANCE OF THE CITY OF APPLE VALLEY, MINNESOTA, AMENDING CHAPTER 155 OF THE CITY CODE TO ADD SECTION 155.320 REGULATING CANNABIS BUSINESSES, HEMP BUSINESSES, AND CANNABIS EVENTS The following is the official summary of Ordinance No. ____ passed by the City Council of Apple Valley on _________________, 2024: Chapter 155 of the City Code is amended by adding a Section 155.320 which establishes zoning and performance standards for cannabis businesses, hemp businesses, and temporary cannabis events. A printed copy of the ordinance is available for inspection by any person during regular office hours in the office of the City Clerk at the Apple Valley Municipal Center, 7100 147th Street W., Apple Valley, Minnesota 55124. Guiding Zoning District NCC LB GB RB SC**VB**BP I-1 I-2 Business Type Cannabis Retailer P P P P Cannabis Microbusiness P*P*P* Cannabis Mezzobusiness P*P*P* Cannabis Cultivator (Indoor only)P P P Cannabis Cultivator (Outdoor) Cannabis Manufacturer P P P Cannabis Wholesaler P P P Cannabis Transporter P P P Cannabis Testing Facility P P P Cannabis Event Organizer P P P P Cannabis Delivery Service P P P P P*P*P* Medical Cannabis Cultivator P P P Medical Cannabis Processor P P P Medical Cannabis Retailer P P P P Medical Cannabis Combination Business P*P*P* Lower-potency Hemp Edible Manufacturer P*P*P* Lower-potency Hemp Edible Retailer P P P P P P “P” means Permitted; and “PD-R” means Permitted in Planned Development districts (or zones therein) that permit freestanding or multi-tenant retail building stores and shops. Commercial Industrial ** There are currently no properties zoned with this designation. Cannabis Businesses Preliminary Zoning Guide * Retail sale of its cultivated cannabis or manufactured cannabis products is a permitted accessory use, provided the business has retail operation endorsement under its state license and shall be subject to the accessory retail sales regulations for the applicable zoning district regulations as set forth elsewhere in this Chapter. PD AG PD-R With retail endorsement, retail sales could also occur if With retail endorsement, retail sales could also occur P Draft Ordinance does not allow the sampling of product at an event P Processing is all indoors. Could be a permitted use? PD-R If all activity is indoors, could this be a permitted use? Retail sales of product produced on site is permitted in these zones PD-R Retail sales of this product are permitted where any other retail sales are permitted by state statute “P” means Permitted; and “PD-R” means Permitted in Planned Development districts (or zones therein) that permit freestanding or multi-tenant retail building stores and shops. Notes Cannabis Businesses Preliminary Zoning Guide * Retail sale of its cultivated cannabis or manufactured cannabis products is a permitted accessory use, provided the business has retail operation endorsement under its state license and shall be subject to the accessory retail sales regulations for the applicable zoning district regulations as set forth elsewhere in this Chapter. Da t e S a v e d : 9 / 4 / 2 0 2 4 8 : 4 8 A M Pa t h : G : \ C o m m u n i t y D e v e l o p m e n t \ P l a n n i n g \ C a n n a b i s O r d i n a n c e - S e n s i t i v e A r e a B u f f e r s \ C a n n a b i s O r d i n a n c e - S e n s i t i v e A r e a B u f f e r s . a p r x CITY OF APPLE VALLEY CANNABIS RETAIL DISPENSARY BUFFER MAP *Only those buffers that intersect with properly zoned parcels are displayed here. 0 0.25 0.5 0.75 Miles !I School* 1000' Buffer Park* 500' Buffer Child Care/Preschool* 500' Buffer Residential Treatment Facility* 500' Buffer Land Use (2040) Commercial Industrial Mixed Business Campus Mixed Use McAndrews Rd 140th St W 160th St W 150th St W Ga r d e n V i e w D r Ga l a x i e A v e Jo h n n y C a k e R i d g e R d Pi l o t K n o b R d Di a m o n d P a t h Ce d a r A v e Fl a g s t a f f A v e Ha y e s R d Pe n n o c k A v e Dodd B l v d 155th St W Fo l i a g e A v e 147th St W 145th St W Pal o m i n o D r 157th St W September 17, 2024 Apple Valley Planning Commission Attention: Alex Sharpe, Planning and Economic Development Specialist City of Apple Valley 7100 147th Street W. Apple Valley, MN 55124 Via Email Alex.Sharpe@applevalleymn.gov Re: Vireo – Comment Letter on Draft Adult Use Cannabis Draft Ordinance Dear Planning Commissioners: We represent Vireo Health of Minnesota, LLC (“Vireo”), the operator of eight medical marijuana dispensaries in Minnesota, managed under the Green Goods name, as well as an existing cultivation, manufacturing and production facility in Otsego. This letter provides additional comments regarding the staff report, dated September 18, 2024 (“Staff Report”) and draft ordinance (“Draft Ordinance”), which is to be heard by the Planning Commission on September 18, 2024. As drafted, the Draft Ordinance and Staff Report conflate state license types with permitted uses under the zoning ordinance and would create conflicts between the City’s ordinance and allowed uses under Minnesota law. With this in mind, we are proposing minor clarifications to the draft text amendment summarized below. Distinguish Use Regulations from License Type Vireo will operate under a Medical Cannabis Combination license, which allows it to conduct cultivation, manufacturing, and retail sales of both medical and adult-use recreational cannabis. However, there is no requirement that these activities occur on the same site. Vireo’s cultivation and manufacturing operations are located in Otsego, and any retail location in the City would be a retail-only facility. However, the Draft Ordinance omits a medical cannabis combination business from the definition of “Cannabis Retailer,” and would limit a medical cannabis combination business licensee from operating a retail location in the City except where it is an accessory use in the industrial districts. This omission could affect not only medical cannabis combination licenses, but also cannabis mezzobusiness and cannabis microbusiness licenses. Exhibit A proposes revised Ordinance language that would remedy and clarify this defect so that medical cannabis combination business licensees, and cannabis mezzobusiness or cannabis microbusiness licensees with the correct endorsements can operate as a standalone Cannabis Retailer anywhere a Cannabis Retailer is allowed, in addition to where accessory to a manufacturing or production facility. Apple Valley Planning Commission September 17, 2024 Page 2 Please contact me with any questions about this letter or the information contained within. Sincerely, Jacob W. Steen, for Larkin Hoffman Direct Dial: 952-896-3239 Direct Fax: 952-842-1738 Email: jsteen@larkinhoffman.com cc: Amber Shimpa (ambershimpa@vireohealth.com) Regina Simonson (reginasimonsen@vireohealth.com) Apple Valley Planning Commission September 17, 2024 Page 3 Exhibit A Proposed Text Amendment § 155.320 CANNABIS BUSINESSES, HEMP BUSINESSES, AND TEMPORARY EVENTS. (B) The definitions of words and phrases contained in Minn. Stat. § 342.01 and the Rules promulgated by the Office of Cannabis Management shall apply to this section unless defined differently herein. The following words and phrases shall have the meanings stated: *** CANNABIS RETAILER. A business that sells immature cannabis plants and seedlings, cannabis flower, cannabis products, hemp products, and other products authorized by law to customers and patients in a retail-only setting, including cannabis mezzobusiness with retail operations endorsement, cannabis microbusiness with retail operations endorsement, or medical cannabis combination business operating a retail location, but excluding a cannabis microbusiness with a retail operations endorsement and cannabis mezzobusiness with a retail operations endorsement, or medical cannabis combination business where such retail operations occur as an accessory. 4893-0433-6357, v. 1 I T E M: 6.A. P L A NNI NG C O MMI S S I O N ME E T I NG D AT E:October 2, 2024 S E C T I O N:Other Business Description: Review of Upcoming S chedule and Other Updates S taff Contact: B reanna Vincent, Department Assistant Department / Division: Community Development Department AC T I O N RE Q UE S T E D: N/A S UM M ARY: Next P lanning Commission Meetings: Wednesday, October 16, 2024 - 7:00 p.m. Public hearing applications due by 9:00 a.m. on Wednesday, September 18, 2024. Site plan, variance applications due by 9:00 a.m. on Wednesday, October 2, 2024. Wednesday, November 6, 2024 - 7:00 p.m. Public hearing applications due by 9:00 a.m. on Wednesday, October 9, 2024. Site plan, variance applications due by 9:00 a.m. on Wednesday, October 23, 2024. Next City Council Meetings: T hursday, October 10, 2024 - 7:00 p.m. T hursday, October 24, 2024 - 7:00 p.m. B AC K G RO UND: N/A B UD G E T I M PAC T: N/A